Not exactly sure how you determined that this property is "going into auction" as the Reatlor database does not indicate that this is a distressed property. In addition, there does not appear to be any money owed and/or liens to date.
Even if was a distressed property and the current homeowner owed say $420, but the value was $1.1M, the bank will NOT let it go for the $420. They will allow it to go through the foreclosure processs for reasons we can discuss at a a later time. If you have ever been to an auction, you see that there are beau coup pro's there that do this for a living with tons of cash in pocket that will bid this property up to a far greater price if the bank was willing to let it go for 1/2 of it's actual value . . . it's just happening in this market.
Most typically banks will allow foreclosures go through the process and then place the property market at or near market value. Again, if you would like to discuss the process further, call me @ 732.606.2931.
Due to the backlog of foreclosures and the 2010 moratorium on foreclourses, which I understand has recently been lifted, the date of 9/22/11 is quite often comical. I've seen so many properties that were scheduled for foreclosure proceedings dating back to 2009 that have yet to reach that point.
I can say so much more, but it's beter to dsicuss in person.
By the way, the property is currently on the market for rent.
Francesca Patrizio, Broker Sales Associate, ePro, SRES
Gloria INilson REALOTRS, Real Living - Spring Lake